CAM - September 27, 2010 - Chapter 0 - Introduction To The DCAA Contract Audit Manual

Defense Contract Audit Agency

Informations

• Publié par: Thiok
• Nombre de lectures: 106
• Langue: English

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0-001
0-000 INTRODUCTION TO THE DCAA CONTRACT AUDIT MANUAL
0-001 Introduction
Introductory material is presented in this section, along with an explanation of certain
terms and abbreviations used frequently in this manual.
0-002 Purpose and Applicability of the Manual
a. This manual is issued to provide technical audit guidance, audit techniques, audit
standards, and technical policies and procedures to be followed by DCAA personnel in the
execution of the contract audit mission (see also 0-006). The material in this manual is
instructive. Reference to this manual should not be made in audit reports or correspondence
addressed to offices other than those of DCAA.
b. The procedural and audit guidance in the manual is applicable to the audit of all types
of contracts. The auditor, however, must use professional judgment in (1) selecting the
procedures and techniques best suited to the audit objectives, and (2) determining the scope
of the audit in each instance.
0-003 Citation
The manual bears the title "DCAA Contract Audit Manual.'' It may be referred to as
"CAM'' and individual paragraphs may be cited as "CAM'' followed by the paragraph
number; for example, "CAM 1-103.'' Within the manual this citation is "1-103.''
0-004 Numbering
a. Pages are numbered at the top of the page as follows:

102


Chapter Number (or Appendix

Letter)

Page Number

b. Paragraphs are numbered as follows:

4-104

Chapter Number (Or

Appendix Letter)

Section

Paragraph

Generally, paragraphs whose numbers include a decimal (as 1-203.1 through 1-203.3) are
major, first-level subdivisions of the basic paragraph subject (as 1-203).
0-005 Revisions
Printed editions of the CAM a re currently published in January and July. The process to
update the CAM i s continuous. The electronic version of the CAM i s the most current. Cut­
off dates of January 1 and July 1 are established for incorporating changes to each printed
edition of the CAM. The CAM in corporates all changes as of that date and the printed CAM
will be available as soon as possible after those cut-off dates. CAM is distributed by
paperback, available online at DCAA’s Intranet, and on the AT&L Knowledge Sharing
System (AKSS) web site. CAM users are encouraged to access the electronic edition,
because it is maintained on a current basis.
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0-006 Other DCAA Audit G uidance
Memorandums for Regional Directors (MRDs) provide a mechanism for disseminating
audit guidance which supplements or revises audit guidance. Audit guidance in open
Memorandums for Regional Director (MRDs) is available on DCAA web sites under Open
Audit Guidance and generally supersedes the guidance reflected in the Contract Audit
Manual (CAM). Changes in audit policy issued in an MRD are often incorporated in the
CAM at a later date and the MRDs will remain open until the guidance is incorporated
into the CAM.
When an auditor starts a new assignment, open MRDs must be reviewed for any
guidance that may apply to that assignment. Open MRDs can be identified using the link
provided on the DCAA Intranet home page for “MRDs, AGMs, & AMGMs” and the date
range function.
The online CAM, available on the DCAA intranet home page and the public web site
(http://www.dcaa.mil), is the most current version of the audit manual and should be used,
considering any open MRDs, over other CAM versions to the extent possible. The
hardcopy CAM is available for interim use when access to the DCAA intranet or the
DCAA public website is not available, such as at contractor sites. However, before acting
on guidance obtained from the hardcopy CAM or copy available through icons on DCAA
user computer desktops, auditors must review the online CAM and MRDs to ensure the
guidance is the most current.
0-007 User Comments/Suggestions
User comments/suggestions are welcome. DCAA employees are encouraged to
report any errors noted in the manual using the DCAA Single-Source Suggestion Forum
available from the intranet home page.
Non-DCAA users can send comments/suggestions by fax to (703) 767-3234, by e-
mail to [e-mail], or mail to:
Headquarters, DCAA
Attention: Publications and Systems Division (PPS)
8725 John J. Kingman Rd., Suite 2135
Fort Belvoir, VA 22060-6219
0-008 Explanation of Terms and Abbreviations
DCAA --- The Defense Contract Audit Agency.

Director --- Director, DCAA.

Headquarters --- Headquarters, DCAA.

DoD --- The Department of Defense.

Regional office --- The DCAA office having responsibility for all DCAA audit offices and

auditors within a specified geographical area. Each is headed by a regional director a nd is
the only organizational echelon between Headquarters and the field audit offices. Within
each regional office, a particular regional audit manager exercises line authority over
designated field audit offices.
Field audit office (FAO) --- A DCAA term which encompasses both branch offices and
resident offices. It does not include regional offices.
Resident office --- The field audit office having responsibility for the DCAA mission,
generally at one contractor location, and physically located at the contractor's plant.
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Branch office --- The field audit office having responsibility for the DCAA mission for all
contractor locations in a designated area except those assigned to a resident office.
Auditor --- An auditor performing the contract audit function of DCAA.
Financial liaison advisor (FLA) --- A DCAA auditor assigned responsibility for coordinating
contract audit matters with a procurement or contract administration office.
Assignment Code --- The smallest scope of audit review which may be separately
programmed, including a five-digit identifier, a title and a scope statement or the
five-digit number recognized by the DCAA DMIS as specifying a discrete audit scope.
Audit Area --- A set of interrelated internal controls or elements of risk within one of
the four major functional groupings.
Major Functional Grouping --- An element of the contractor's cost accounting system.
The four major groupings presently in use are: General Controls (accounting and
estimating systems, balance sheet, and income accounts); Direct Labor; Direct
Material; and Indirect Expense.
Subarea --- An element of internal control or risk within an audit area. For e xample, the audit
area E.1, Special Purpose Reviews within the major functional grouping Indirect
Expense is further analyzed through the subareas Insurance, Pensions, Cost Allocation
Bases, IR&D/B&P, and Other Audits.
Workpackage --- Any combination of predefined scopes of work programmed separately on
the DMIS. It can include:
* A single assignment code.
* Two or more assignment codes.
* An audit area or subarea (some subareas contain only a single assignment code).
* A major functional grouping.
* All direct costs or all indirect costs.
* All costs included in the submission.
This manual also uses definitions stated in Federal Acquisition Regulation (FAR) and
Defense FAR Supplement (DFARS).
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Acronym/Abbreviation Description
A-E Architect-Engineer
ABC Activity Based Costing
ACMS Advanced Cost Management Systems
ACO Administrative Contracting Officer
ACRS Accelerated Cost Recovery System
ADR Alternative Dispute Resolution
ADR Asset Depreciation Range
ADV Auditable Dollar Volume
AFAA Air Force Audit Agency
AID Agency for International Development
AICPA American Institute of CPAs
APPS Audit Planning and Performance System
ASBCA Armed Services Board of Contract Appeals
AT Attestation Standards
B&P Bid & Proposal
BCA Board(s) of Contract Appeals
BOA Basic Ordering Agreement(s)
BOE Basis of Estimate
BOM Bill of Material
CAC Contract Audit Coordinator (DCAA)
CACO Corporate/Home Office ACO
CACS Contract Audit Closing Statement(s) (DCAA)
CACWS Cumulative Allowable Cost Worksheet
CAD/CAM Computer-Aided Design & Manufacturing
CAIG Cost Analysis Improvement Group (DoD)
CAM Contract Audit Manual (DCAA)
CAOs Contract Ad